Section 8 Fair Market Rent (FMR) for ZIP 19702 - 2027

Investment Score for ZIP 19702

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,540
1 Bedroom	$1,670
2 Bedrooms	$1,990
3 Bedrooms	$2,370
4 Bedrooms	$2,620
5 Bedrooms	$3,039
6 Bedrooms	$3,404
7 Bedrooms	$3,676
8 Bedrooms	$3,860

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,990	$247,488	0.8%	C
3BR	$2,370	$323,105	0.73%	D
4BR	$2,620	$475,597	0.55%	F
5BR	$3,039	$549,526	0.55%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19702 (Newark, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 19702, as set by HUD for 2026, ranges from $1,490 for a zero-bedroom unit to $2,580 for a four-bedroom unit. For a two-bedroom unit, the FMR is $1,930. This amount represents 25.1% of the median household income in Newark, which is $92,446. However, the actual rent prices in the area significantly exceed these figures. According to Zillow, the median price for a two-bedroom rental property is $246,710, which translates to a monthly rent of approximately $2,056 if we assume a 1% monthly mortgage payment. This results in a price-to-FMR ratio of 10.7x, indicating that actual rents are much higher than the FMR. This substantial gap between FMR and actual rents creates significant constraints for voucher holders. They might find it challenging to secure housing that meets their needs while staying within the FMR limits. The high actual rent prices suggest that landlords may be less inclined to accept vouchers due to the lower reimbursement rates compared to market rents. #### Affordability & Renter Profile In ZIP code 19702, 39.8% of the population are renters, indicating a moderate rental market presence. With a median household income of $92,446, the affordability of housing is a concern for many residents. The FMR for a two-bedroom unit being $1,930, which is 25.1% of the median income, suggests that a significant portion of the population may struggle to afford market-rate rentals. Given the occupancy rate of 96.7%, it appears that the market is relatively tight, with most available units quickly occupied. This high demand could drive up rental prices further, making it even harder for low-income families to find affordable housing. The combination of high actual rents and a tight market indicates that there is a strong need for more affordable housing options in the area. #### Investor Angle From an investor’s perspective, the ZIP code 19702 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1,930, but the actual median rent price is around $2,056. This means that investors focusing on Section 8 vouchers would likely face cash flow pressures since the reimbursement rates are lower than market rents. However, the high actual rent prices suggest that there is potential for positive cash flow if investors can secure tenants willing to pay market rates. The price-to-FMR ratio of 10.7x highlights the premium that investors might have to charge to make a profit, especially when considering the cost of acquisition and maintenance. In terms of investment grade, ZIP code 19702 seems to be a mixed bag. While the high demand and occupancy rates indicate a stable market, the disparity between FMR and actual rents poses risks for those relying solely on Section 8 vouchers. Investors should carefully consider their target tenant base and the potential for market-rate rents before making any investment decisions. #### Specific Actionable Insights 1. **Focus on Market-Rate Rentals**: Given the high actual rent prices, investors should focus on securing tenants who can pay market rates rather than relying solely on Section 8 vouchers. This strategy would help mitigate the risk of negative cash flow and ensure better returns. 2. **Develop Affordable Housing Units**: There is a clear need for more affordable housing options in ZIP code 19702. Investors could consider developing or converting properties into units that fall within the FMR range. This would cater to the low-income population and potentially attract government subsidies or tax incentives aimed at increasing affordable housing stock. 3. **Negotiate with Landlords**: For those who still want to work with Section 8 vouchers, negotiating with landlords to accept slightly higher reimbursement rates could be beneficial. This would require coordination with local housing authorities and possibly offering additional incentives to landlords to make the arrangement more attractive. #### Bottom Line For Section 8-focused investors, ZIP code 19702 presents a challenging environment due to the significant gap between FMR and actual rents. The recommendation would be to **Skip** this ZIP code unless you can secure market-rate tenants or develop affordable housing units. If you choose to invest, focus on strategies that leverage market-rate rents or seek out opportunities for subsidized affordable housing projects. The tight market and high actual rents make it difficult to achieve positive cash flow purely through Section 8 vouchers.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.